The features of VA loans
- Generally, VA guaranteed loans are 15 or 30 years fixed rate products-all fully amortized.
- VA loans are all for property occupied by the owner and from one up to four unit family homes.
- The Veterans Administration charges a funding fee based on the total loan amount. It is based upon loan- to-value, the Veteran's status and whether the Veteran has used the loan program earlier. This fee may be paid in cash or financed.
- Veterans who had a VA mortgage loan before may still get their entitlement restored to use another VA loan.
VA loan is easier to qualify for than a regular loan. It also requires little or no down payment in order to purchase a home. Veterans who had served during World War II (on active duty) or at some later period and honorably discharged later can qualify forVA loans. A veteran not having a certificate of eligibility can obtain it by completing VA.Now the Veterans Affair is also offering VA adjustable rate mortgages (ARM). If one is not planning to stay in one's home for a long time (for more than 5 years) then this ARM would be most suitable. It will prove to be a boon by saving lot of money as the interest rates are usually quite lower in such cases.
I would like to add some more information here.
A veteran can also join a non-veteran in obtaining a VA loan even though he/she is not his/her spouse, but the guarantee will be based on the veteran's portion of the loan.
The non-veteran's part will be not be covered by the guarantee. Lenders who offer these types of joint loans may require you to make a down payment in order to cover the risk on the non-guaranteed portion of the loan.
Both the incomes of the veteran and the non-veteran can be used to qualify for the loan. However, the income of the veteran must be sufficient to repay at least the portion of the loan under the veteran and the non-veteran's income should be sufficient to cover the rest.
Hope this information will help.
So you want to take a VAloan? You can take a VAloanfor buying a home, building a home, purchasing and improving a home. You can speak to the lenders of your area and check out the rates and terms they are offering you. If you feel that you can afford the rates and terms, then you should go for it. But I would suggest you to do some mortgage shopping before agreeing to take a loan. This will help you in knowing the prevalent market rates and terms.
You can get a VA loan for both 15 year and 30 year terms. All active duty officers and honorably discharged service members can apply and get a VA Home loan. You'll be considered eligible for a VA loan if you satisfy any of the criteria like serving 6 years in the National Guard or the Reserves, serving 90 days during war time (Active Duty) or serving 181 days during peacetime (Active Duty) or spouse of a service member who was killed in the line of duty.